Euro moves in a positive zone under inflationary pressures

The euro rose in European trade on Monday on track for the second straight profit against the dollar, amid renewed inflationary pressures on the European Central Bank’s policymakers.

The pressures hurt the odds of an ECB interest rate cut in June as investors await more clues on the path ahead for monetary policies.

The Price

The EUR/USD price rose 0.4% today to $1.1347, with a session-low at $1.1294.

The pair closed up 0.1% on Friday, the first profit in four days away from a two-week trough at $1.1265, following strong eurozone inflation data.

The euro lost 0.55% last week against the dollar, the second weekly loss in a row on concerns about the wider US-eurozone interest rate gap.

Inflationary Pressures

Earlier data showed eurozone inflation passed estimates in April, renewing pressures on ECB policymakers.

Eurozone’s consumer prices rose 2.7% in April, up from a 2.4% rise in March, and passing estimates of a 2.5% increase.

European Rates

Following the data, the odds of an ECB 0.25% interest rate cut in June fell from 60% to 50%.

Now traders await a batch of data and remarks by ECB officials this week to gather more clues.